Gary Wright

Gary Wright - BISS Research

The Post Trade Forum's aim is to propagate debate and discussion between senior practitioners in Post Trade Operations in the global securities market; to bring about increased awareness and knowledge across both buy-side and sell-side financial institutions in financial products and be a focal point for firms and practitioners to air views.

Is T2S still relevant?

03 April 2012 | 3048 views | 0

Way back in 2006 the idea of T2S became a reality. In the years since the creation of the Euro, the European securities markets have continued to lag badly behind the European project to create a single financial market. Unfortunately, this is still the
case today, with severe settlement drag, as each country operates different and very varied, clearing and settlement practices and processes with different rules and laws, utilising different systems and technologies. The end result is high cost, high risk
and an unattractive financial securities market for global investors.

Many Directives and countless regulations, since the financial crisis became known in 2007, [and which is still going strong today], have almost totally changed market structures. For example MiFID opened up executions to numerous electronic exchanges. In
addition mergers and acquisitions and the introduction of new technologies and financial products have also massively changed the market.

Following delays from the original go live date, T2S is now expected to be fully implemented by 2017, after the user testing/migration phase. However, based on my experience, this could well herald further delays. And who knows what the European financial
markets will look like in 2017?

Will the Euro still exist?

European market infrastructures are also changing with Stock Exchanges building vertical silos to clearing and settlement and this might lead to consolidation in the presently fragmented clearing market. What about the ever changing regulatory requirements
and consolidation at the business end? Are the aforementioned, reasons to negate T2S or do they reinforce the need?

With estimated development costs of around 400 million euros and with over ten years between design and expected implementation, how relevant is T2S to today’s markets and investors? Join the
Post Trade Forum and the panel of top industry experts on the morning of the 26th June at the London Stock Exchange to debate with them all the issues around T2S.

Gary's profile

CEO of B.I.S.S. Research, founder of the BISS Independent Accreditation for all systems and services provided to financial services companies internationally. Guest Lecturer at Reading University and...